October 17, 2018 1.00PM / Bukola Akinyele, Proshare WebTV
The consumer price index, (CPI) latest report in September 2018 increased by 11.28 percent in which 0.05 points higher than the rate recorded in August 2018 (11.23) percent.
In this article we highlight 5 key takeaways from the Nigerian September, 2018 Headline Inflation;
A Consecutive Increase in CPI
From the analysis, the September 2018 inflation figure showed a second consecutive increase in the inflation rate, first August(11.23%), and September (11.28%)
Urban & Rural Inflation Increase
The urban inflation rate increased by 11.70 percent [year-on- year] in September 2018 from 11.67 percent recorded in August 2018, while the rural inflation rate increased by 10.92 percent in September 2018 from 10.84 percent in August 2018.
On a month-on-month basis, the urban index rose by 0.86 percent in September 2018, down by 0.14 from 1.00 percent recorded in August, while the rural index also rose by 0.82 percent in September 2018, down by 0.14 percent from the rate recorded in August 2018 [0.96] percent.
The corresponding twelve-month year-on-year average percentage change for the urban index is 13.58 percent in September 2018. This is less than 13.95 percent reported in August 2018, while the corresponding rural inflation rate September 2018 is 12.80 percent compared to 13.21 percent recorded in August 2018.
Rise in Food Index Inflation
The composite food index rose by 13.31% in September 2018 compared to 13.16% in August 2018. This rise in the food index was caused by increases in prices of potatoes, yams and other tubers, vegetables, fruits, meat, milk, cheese and egg, bread and cereals and fish.
On month-on-month basis, the food sub-index increased by 1.00% in September 2018, down by 0.42% points from 1.42% recorded in August.
States Profile on Inflation
In September 2018, all items inflation on year on year basis was highest in Kaduna (12.93%), Ebonyi (12.86%) and Bayelsa (12.83%), while Cross River (8.42%), Plateau (8.77%) and Ogun (9.22%) recorded the slowest rise in headline Year on Year inflation.
In September 2018, food inflation on a year on year basis was highest in Kwara (17.17%), Bayelsa (16.62%) and Abuja (15.70%), while Plateau (8.82%), Abia (10.10%) and Ogun (11.11%) recorded the slowest rise in food inflation.
Still Within the 2018 FGN Inflation Target
At 11.28% the September, 2018 inflation rate is still within the 2018 Federal Government target pegged at 12.4%. With less than three months to the end of year, it will be interesting to see how it closes in December.